Trump secures $600 billion Saudi investment pledge on Gulf tour
Donald Trump signed a strategic economic deal worth hundreds of billions of dollars with Saudi Crown Prince Mohammed bin Salman on Tuesday (May 13) in Riyadh, as the U.S. president began a tour of Gulf states aimed at drumming up trillions of dollars in investments. Diane To reports.
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The Independent
24 minutes ago
- The Independent
Trump is ‘obsessed' about having a call with China's Xi this week to hammer out trade deal, insiders reveal
President Donald Trump has grown increasingly focused on calling Chinese President Xi Jinping this week to get closer to a deal to end the ongoing trade war between the world's two largest economies. The White House has said that Trump and Xi will 'likely' speak this week. However, it may not be the barrier-breaking conversation the president is aiming for. 'The president is obsessed with having a call with Xi,' a person familiar with the talks told Politico. Trump believes he can untie the knot even though the U.S. is trying to change a trade relationship worth $600 billion and doing so without losing too much political capital in the U.S. The person familiar with the discussions told the outlet that the administration is 'under a lot of pressure' following China 's critical minerals blockade, which blocks U.S. access to essential components in auto and electronics manufacturing as well as the production of munitions. 'I don't think Xi is too interested in exporting any more rare earths or magnets to the United States; he's made his position clear,' the person noted. But they added that Xi would likely take Trump's call. 'The president has some leverage, and the question is when he's ready to impose maximum pressure on the Chinese government,' they said. Meanwhile, a former Trump official who remains close to the White House told Politico that the president 'feels like a call between principals is a way to cut through a lot of this noise, and get right to the heart of the matter.' However, some observers think Trump will struggle to get Xi on the phone. Obama's assistant secretary of state for East Asian and Pacific Affairs, Daniel Russel, told Politico that China 'has a sharp nose for weakness, and for all his bravado, Trump is signaling eagerness, even desperation, to cut a direct deal with Xi.' 'That only stiffens Beijing's resolve,' he added. Beijing has reportedly also been disturbed by Trump's very public showdowns with world leaders, such as with Ukrainian President Volodymyr Zelensky and South African President Cyril Ramaphosa. This has made the Chinese hesitant to participate in high-level discussions. Biden National Security Council deputy senior director for China and Taiwan, Rush Doshi, told the outlet that China 'sees President Trump as unpredictable, which poses risks reputationally for President Xi.' 'It's not usual practice for PRC diplomats to put the leader at risk of a potentially embarrassing or unpredictable encounter,' he added. White House Press Secretary Karoline Leavitt said on Monday that Xi and Trump would 'likely talk this week,' but a call has yet to be scheduled, a White House official told Politico. Meanwhile, Chinese Foreign Ministry spokesperson Lin Jian said, 'I have no information to share' regarding a call. Last month, China and the U.S. reached an agreement to lower U.S. tariffs from 145 to 30 percent. Beijing cut back on levies on imports from the U.S. to 10 percent, and they said they would remove barriers on the exports of essential minerals. The agreement included a 90-day deadline to begin fresh discussions on a wider trade deal to take into account U.S. concerns regarding Chinese trade practices. However, these new talks have gotten off to a bad start with miscommunication and differing expectations. The Trump administration has argued that China has slowed its new shipments of critical minerals and rare earth magnets. Appearing on CNBC on Friday, U.S. Trade Representative Jamieson Greer said: 'When they agreed in Geneva to remove their tariff and their countermeasures, they removed the tariff like we did. But some of the countermeasures, they've slowed on.' While a business official told Politico that 'Everyone agrees that for any additional progress to happen on tariffs, the gateway is fentanyl,' the U.S. hasn't responded to two proposals put forward by Beijing to deal with the issue. The proposals have been described as being designed by Beijing to provoke talks about what the Chinese can do to stop the flow of components that Mexican cartels use to make the drug. However, many officials in the Trump administration don't believe China would actually take the steps required to adhere to any fentanyl agreement. Former Bill Clinton and George H.W. Bush assistant U.S. trade representative Harry Broadman told Politico that while 'Trump is a deal maker,' Xi is not. 'He's a Party guy at the top of an administrative superstructure,' he said. 'I cannot imagine that Xi would get into specifics — at most, they might agree on certain principles, but that's not likely to satisfy Trump.'
Reuters
27 minutes ago
- Reuters
NYSE Arca submits filing for listing of Truth Social Bitcoin ETF
June 3 (Reuters) - NYSE Arca on Tuesday submitted a filing to the U.S. markets regulator seeking regulatory approval to list the Truth Social Bitcoin ETF. Spot bitcoin ETFs have gained popularity since their January 2024 debut, drawing billions in inflows as investors seek regulated, liquid exposure to the cryptocurrency. In February, the Trump Media and Technology Group (DJT.O), opens new tab applied to trademark six investment products that track bitcoin and the U.S. manufacturing and energy sectors. U.S. President Donald Trump is the majority owner of TMTG, which runs the social media platform Truth Social. The filing, known as a Form 19b-4, is a requirement that organizations such as stock exchanges submit to the U.S. Securities and Exchange Commission to propose a rule change or to list a new product. It's a key procedural step before an exchange can begin listing and trading a new fund or instrument. The fund will seek to reflect the performance of bitcoin and has been "designed to remove the obstacles represented by the complexities and operational burdens involved in a direct investment in bitcoin." Bitcoin has gained 12.7% so far this year and is trading above $105,000.
The Independent
38 minutes ago
- The Independent
Trump promises to hike steel and aluminum tariffs to 50% starting Wednesday. Here's what we know
U.S. President Donald Trump has promised to hike nearly all of his tariffs on foreign steel and aluminum to a punishing 50% on Wednesday, a move that would hammer businesses from automakers to home builders, and likely push up prices for consumers. Foreign-made steel and aluminum is used in household products like soup cans and paper clips as well as big-ticket items like a stainless-steel refrigerators and cars. Economists warn that the latest tariffs will significantly squeeze the wallets of both companies and shoppers alike. Here's what we know. What's the tariff rate on imported steel and aluminum now? Steel and aluminum imports are currently taxed at 25% — a rate that both metals have faced across the board since March 12 when Trump's order to remove steel exemptions and raise aluminum's levy from his previously-imposed 2018 import taxes went into effect. That's about to double. In a proclamation issued Tuesday, Trump confirmed that the U.S. will begin taxing nearly all steel and aluminum imports at 50% after the clock strikes midnight Wednesday. Steel and aluminum from the U.K., meanwhile, will continue to be levied at 25% due to a recent trade deal. Why is Trump raising these tariffs? Trump says it's all about protecting U.S. industries. He reiterated that argument on Friday, when he first announced the 50% tariff during a visit with steelworkers in Pennsylvania, where he also discussed a 'planned partnership' between U.S. Steel and Japan's Nippon Steel. In his speech at U.S. Steel's Mon Valley Works–Irvin Plant in suburban Pittsburgh, Trump said that the tariff hike would 'further secure the steel industry in the U.S.' Shortly after, he took the same tone when sharing plans to also raise tariffs on imported aluminum. In Tuesday's proclamation, Trump also said that the higher tariffs would ensure that imported steel and aluminum would 'not threaten to impair the national security." 'In my judgment, the increased tariffs will more effectively counter foreign countries that continue to offload low-priced, excess steel and aluminum in the United States,' he said in the proclamation. How is the industry responding? While some analysts have credited the tariffs Trump imposed during his first term with strengthening domestic production of steel and aluminum, many others have warned that stark new levies can make it difficult for the industry to adjust. Some organizations representing metal workers also note that tariffs aren't the only solution needed to boost U.S. manufacturing. 'While tariffs, used strategically, serve as a valuable tool in balancing the scales, it's essential that we also pursue wider reforms of our global trading system," David McCall, international president of the United Steelworkers union said in a statement, noting that work must be done 'in collaboration with trusted allies" like Canada — the top exporter of steel and aluminum to the U.S. — to help 'contain the bad actors." Matt Meenan, vice president of external affairs at the Aluminum Association, added that the trade group 'appreciates President Trump's continued focus on strengthening the U.S. aluminum industry,' but that 'tariffs alone will not increase U.S. primary aluminum production.' 'We also need consistent, predictable trade and tariff policy to plan for current and future investment,' Meenan said. What kinds of products could be impacted by heightened steel and aluminum tariffs? A range of businesses that rely on foreign-made steel and aluminum have already begun feeling the impacts of Trump's previously-imposed levies. But the latest anticipated hikes could drive up costs even more. Steel and aluminum are used in a range of products like washing machines, consumer electronics and cars. Much of the auto industry relies on a global supply chain. And even if you aren't in the market to buy a new vehicle, repairs could involve parts that use imports of either metal, driving up overall maintenance and ownership costs. In the grocery aisle, steel and aluminum are ubiquitous in the packaging for many foods, including canned tuna, soup and nuts. Experts warn that hiking import taxes on these materials could led to higher grocery prices overall, further straining consumers wallets. The aluminum and metal tariffs also carry wider implications for construction and transportation as a whole, as many key building parts and materials are made with these metals. Economists further warn of spillover impacts. Even if a product isn't directly packaged in steel or aluminum, there could be higher costs to build the shelf it's sold on, for example, or truck used to transport it to the store. And all of that could trickle down to the consumer down the road. If foreign competition becomes 'priced out" due to these new tariffs, U.S. steel and aluminum producers may also find room to raise their own prices. As a result, even companies that don't buy these foreign metals could end up paying more. Steel prices have already climbed 16% since Trump became president in mid-January, according to the government's Producer Price Index. And as of March 2025, steel cost $984 a metric ton in the U.S., significantly higher than than in Europe ($690) or China ($392), per the U.S. Commerce Department. Will there be any exceptions? The new 50% tariff rate will apply to nearly all steel and aluminum coming into the U.S. from other countries. But the U.K., which recently reached a sweeping trade agreement with the U.S., will see an exception. As part of trade deal reached between the two nations on May 8, the U.K. said that the U.S. had agreed to eliminate its current 25% duties on British steel and aluminum down to zero. That exemption had yet to go into effect in the weeks following — but in his proclamation issued Tuesday, Trump acknowledged that it was 'necessary and appropriate' to implement the deal, and would 'accordingly provide different treatment' for these metals coming from the U.K. Per Trump's proclamation, the duty on British steel and aluminum will now stay 25%. But that rates could be adjusted starting on July 9 if the U.S. government determines that Britain has not complied with the framework. Trump's planned hikes for steel and aluminum tariffs for the rest of the world could spark retaliation from other trading partners. In response to levies imposed on these metals earlier in the year, for example, the European Union previously outlined countermeasures. The 27-nation bloc later delayed those actions until July 14 in efforts to ease negotiations, but said on Monday that was preparing a list of measures to enact if a trade deal with the U.S. crumbles. _______ AP Writers Jill Lawless in London, Josh Boak and Michelle Price in Washington, D.C., contributed to this report.
